How does the direct debit system work in Spain?

The direct debit system in Spain.

It is very easy to set up a direct debit (domiciliación de recibos) on a Bank account, and you can do it with your Insurance policies requesting it at BMI Insurance Brokers office.  The Bank branch can provide the required forms.  Also, most companies supply a template when subscribing to their service or they can set it up for you at your request.

These payments can also be created and managed via most Internet and telephone banking services, so you can easily track your payments from your home in Spain or abroad.

By setting up a direct debit you make sure that the utility supply will not be cut off if you miss the cash payment deadline.  A direct debit does not involve any type of loan or finance, neither an advance payment by your Bank.  The receipt amount will be debited to your account at the payment day.

Direct debits from an account will remain in force until they are cancelled by the account holder.

Most Banks offer this service free of charge and more of them are now offering a percentage refund on the debited amount, so this maight also be a way of saving money for you.

IMPORTANT: According to Spanish Law, the account holder has a 30 days period to cancel any payment that has been debited to the bank account by direct debit.    This is to protect your consumer rights in case of disagreement with the amount that has been debited to the bank account.  You can cancel the payment by simply contacting your local Bank branch or by your internet banking services.

Any claims for the return of incorrectly charged direct debits will automatically be returned without question within 30 days of the debit being made on the account.

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